At this crisis point in history - what could possibly create these rare and extraordinary gains?

An Arizona multi-millionaire's revolutionary initiative is 
helping average Americans  find quick and lasting stock market success.

Since the Coronavirus came into our lives this slice of the stock market has given ordinary people the chance to multiply their money by 96% in 21 days on JP Morgan.

Investing  | October 30, 2020

America is gripped with hope and fear ahead of Tuesday’s presidential reckoning. It might be the only thing that Democrats and Republicans can agree on ahead of a historically polarized election.

The Republicans naturally hope that Donald Trump will be elected to another four years as president. If he loses, they fear the country will go to hell.

The Democrats, of course, hope that Joe Biden is elected president. They fear that another four years of Trump will damage the country, perhaps irreparably.

Wall Street’s investment strategists generally seem to expect that Biden will win, but investors would be wise to ignore the Street’s predictions no matter how well reasoned they sound.

In 2016, Hillary Clinton was widely expected by the Wall Street establishment to win the presidential election, and the banks and their strategists and lobbyists were profoundly wrong. At the time, the anger that people felt at the political establishment was palpable for anyone outside the finance bubble, but the Street is generally so insulated from the realities and financial pressures of everyday people that it has a hard time understanding how Main Street sees the world.

This year, the anger about the state of the nation—and people’s personal predicaments amid the Covid-19 pandemic—is so widespread on both sides of the political spectrum that calling a victory is arguably harder than in 2016, even though the polls now seem to favor a Biden victory. Voter turnout should be at historic levels, as most everyone passionately believes that the future of the country is at stake.

Rather than pinning investment strategies around a particular candidate winning the election, it is worth pondering what could happen if and when hope and fear collide after the election results are finally announced.

It is reasonable to expect that there will be what strategists call a “macro volatility” event around the election. The bland phrase simply means that the S&P 500 index could surge higher, or lower, in reaction to election news.

Trying to anticipate the market’s postelection trajectory, however, is little more than a coin-flip exercise. It is better to wait for the reaction and then respond, rather than guessing on the direction of the move in advance.

Should the stock market tumble on the election results, sell cash-secured put options on stocks that you want to buy, or on stocks that you own and want to own more of. If stocks rally on the election news, the approach also works.

The strategy is elegantly simple. Investors pick a price at which they want to buy a stock. They set aside in their brokerage account the amount of money that is needed to purchase the stock at the put-strike price. Should the stock price decline to the put strike price at expiration, investors are obligated to buy the stock. Should the stock be above the strike price at expiration, investors get to keep the money.

The key risk is if the stock falls sharply below the put strike price. Should that happen, investors must buy back the put or buy the stock at the strike price.

Our advice is to employ an oft-repeated strategy: time arbitrage. When options inflate with fear and greed premiums, strategic investors can take advantage of short-term paroxysms to curate long-term stock positions. The action enables investors to compound returns of favored equities, adding to the income generated by the equity’s dividend or even creating a dividend-like payment on the many growth stocks that don’t return capital to investors that way.

It takes a strong constitution to view market weakness—as we have recently experienced—as an opportunity, but that’s exactly what it is. Make volatility your friend. Use options to monetize investor fear and to potentially buy stocks at lower prices.

Read the Original post here.

A revolutionary initiative is helping average Americans find quick and lasting stock market success.

275% in one week on XLF - an index fund for the financial sector. Even 583%, in 7 days on XHB… an ETF of homebuilding companies in the S&P 500. 

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